Art Risk Advisory: Art, Collectibles, and Wine

The K2 Intelligence team understands the intricacies of the markets in which art, collectibles, and wine are bought and sold. Equally as important, we understand the players who operate in these markets, and as such, we are perfectly positioned to provide you with transparency in this often opaque world, and to ensure that your transactions are legitimate.

Before acquisitions are made, during the course of ownership, or upon sale, we work with collectors and dealers of art, collectibles, and wine to conduct due diligence and provenance research on works of art; maintain physical security during storage, display, and transport; resolve complex frauds and disputes; and track down missing property.

When issues of rights, provenance, and authenticity arise, clients turn to K2 Intelligence for support in fact-finding, witness location, and evidence-gathering services. Through extensive due diligence, we prepare referrals and coordinate with law enforcement and other appropriate authorities.

Our team—made up of former prosecutors; law enforcement officials specializing in art investigations; art historians; experts in collectibles, wine, and the art market; and specialists in asset tracking and forensic accounting—is uniquely qualified to navigate these complex issues. Whether you are a collector, artist, dealer, law firm, lender, insurance company, or cultural institution, we are ready to assist with protecting your financial interests and the interests of those you represent. From conducting discreet research surrounding art market reputation and practices to investigating red flags raised during sales, to physical security advising and transaction and litigation support, K2 Intelligence’s team of experts has the knowledge and experience to ensure your art-related transactions and matters proceed smoothly.

K2 Intelligence also acts as an advisor to clients in determining the most effective route to resolution—whether the pursuit of civil action, a law enforcement or government referral, mediation, or evidence-gathering in advance of a determination. Our team is poised to assist throughout the United States and across the globe.

Provenance ResearchProvenance, the ownership history of a work of art or other object, ideally traced from the artist to the present day, is crucial for authentication, title, and peace of mind. While a complete, unbroken provenance is not obtainable for all objects, any ownership history presented as a work’s provenance must be supported by documentary evidence. K2 Intelligence’s provenance research expertise can help collectors, art dealers, art institutions, insurance companies, and other art world players mitigate risk by verifying, investigating, and documenting the provenance of your objects.

Art Market Transactional Due DiligenceThe art market is notoriously one of the most unregulated financial markets, which all too often lands players on the front pages of the news and deep in litigation. Despite the lack of government-sanctioned regulations, our team helps to ensure your art market transactions are free from scandal and executed in accordance with the most up-to-date financial regulations. We’ve worked with clients to vet potential high-value bidders using the Know Your Customer (KYC) model, sculpt language surrounding transactions, and enforce strong Anti-Money Laundering (AML) practices.

K2 Intelligence also acts as an advisor to clients in determining the most effective route to resolution—whether the pursuit of civil action, a law enforcement or government referral, mediation, or evidence-gathering in advance of a determination. Our team is poised to assist throughout the United States and across the globe.

Provenance, the ownership history of a work of art or other object, ideally traced from the artist to the present day, is crucial for authentication, title, and peace of mind. While a complete, unbroken provenance is not obtainable for all objects, any ownership history presented as a work’s provenance must be supported by documentary evidence. K2 Intelligence’s provenance research expertise can help collectors, art dealers, art institutions, insurance companies, and other art world players mitigate risk by verifying, investigating, and documenting the provenance of your objects.

The art market is notoriously one of the most unregulated financial markets, which all too often lands players on the front pages of the news and deep in litigation. Despite the lack of government-sanctioned regulations, our team helps to ensure your art market transactions are free from scandal and executed in accordance with the most up-to-date financial regulations. We’ve worked with clients to vet potential high-value bidders using the Know Your Customer (KYC) model, sculpt language surrounding transactions, and enforce strong Anti-Money Laundering (AML) practices.

The members of K2 Intelligence’s Art Risk Advisory practice come from a wide range of backgrounds and possess expertise drawn from diverse experience in the art world. The practice’s professionals have advanced degrees in art history, museum studies, archaeology, and law, and include, among others, an art historian and provenance researcher formerly with a world-renowned museum, a former FBI special agent, an art market financial compliance specialist, a former Manhattan prosecutor, and a former detective on the NYPD’s Major Case Squad who was the sole investigator responsible for art-related crimes.

Our team is uniquely qualified to assist clients in a wide range of art-related investigations and disputes. Its members’ collective experience spans some of the most significant art-related cases in recent years, including a $25 million art consignment fraud case(U.S. v. Michel Cohen); a $30 million art forgery case involving Modern and Impressionist paintings (U.S. v. Ely Sakhai); an $11 million art fraud case involving a fake Jasper Johns sculpture(U.S. v. Brian Ramnarine); a $9 million major theft case involving the theft of drawings and paintings from the studio of Jasper Johns(U.S. v. James Meyer); a $30+ million counterfeiting case involving rare and collectible wine (U.S. v. Rudy Kurniawan); a case against a forger engaged in a global scheme to sell fake Damien Hirst prints (People v. Vincent Lopreto); the recovery of a stolen Salvador Dalí drawing and the conviction of the thief who stole it off the wall of a Manhattan gallery (People v. Phivo Istavrioglou); and a high-profile art fraud case relating to 63 forged Abstract Expressionist paintings (De Sole v. Knoedler Gallery, LLC et al.).

More generally, our team members have directed investigations that have led to the return of significant works of art; been instrumental in the recovery of millions of dollars in stolen art; and uncovered complex art frauds, thefts, and forgeries, leading to numerous convictions. We also have extensive experience in fact-finding in support of litigation, due diligence investigations, deep background research, asset recovery, and the development of KYC programs for art market clients.

Regarding the financial component of transactions, not only does K2 Intelligence have significant knowledge of the art market as a platform for money laundering, we are also active in all areas of financial crimes compliance. In one recent engagement, we were responsible for the financial market’s largest historical transaction-monitoring lookback, which involved analysis of multiple years’ worth of transactions, identification of unusual activity, and drafting of suspicious activity reports for submission to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). We use this experience and expertise to tailor bespoke KYC and compliance solutions for our art market clients.